Sure $400 is too high for the mass market, but who says Sony has to sell at a loss in order to reach the mass market? Profitability is more important than market share.That is common business sense, everything else was hybris. They will just have to wait it out until component prices come down, which will probably not be this year.
If the PS3 really should have sold for $800 in 2006 and costs have come down 25% per year since then, they might just about break even on the hardware by the end of the year.
One thing to comfort them: It's much harder for XBox than for Playstation to sell into the mass market. Many PS2 owners will just wait another year before they upgrade to PS3, especially in Europe.
Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.
